Open banking's red tape may stifle lenders' innovation: fintechs

A lender levy will further discourage banks. (Image: Depositphotos)

Fri, 17 Oct 2025

New red tape governing open banking has drawn mixed responses from fintechs, which say the surprise no-customer-fees regime for lenders may stifle innovation as the levies prove to be lead weights.In its regulations, the Ministry of Business Innovation and Employment (MBIE) has forbidden banks from charging for open banking altogether.“This removes a key barrier to innovation and aligns New Zealand with international best practice,” MBIE said by way of justification.This unexpected regulatory position was greeted with surprise by a...

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